Grubman’s sordid tales :: IPO and Worldcom

Om Malik

Aug. 27, 2002 - 9:08 AM PST
Aug. 27, 2002 - 9:08 AM PST

The New York Times ::Salomon Gave a Big Helping of New Stocks to WorldCom :: fficers and directors of WorldCom received thousands of shares of hot initial public offerings from Salomon Smith Barney in the late 1990’s, according to documents delivered late yesterday by the firm to a Congressional committee investigating the collapse of WorldCom. The documents submitted by Salomon, which were delivered in response to a subpoena, also indicated that Jack B. Grubman, the firm’s former star telecommunications analyst, was part of the allocation process when shares of initial offerings were doled out to WorldCom executives.

Congressional committee released copies of internal WorldCom e-mail messages yesterday that it says suggest that David Myers, the company’s former controller, tried early this year to silence an executive who had questioned accounting practices at WorldCom.